From:
V. Arunachalam,
New No: 30, Old No: 13,
Subramaniya Swamy Koil Street,
West Chinthamani,
TIRUCHIRAPPALLI-620002
Tamil Nadu.
E-Mail: <..clipped for pivacy..>

Dear Sir,

Sub: Clarification regarding maturity proceeds of UTI-ULIP Plan 1971.

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I am 59 years of age. I had joined the above UTI – ULIP Scheme on 25-01-1999 with an annual contribution of Rs.7,500/- for a period of 10 years. Every Year after taking a sum of Rs.510/- towards insurance the balance was invested and units allotted accordingly. No insurance amount was taken for the remaining 3 years as per the scheme. Further they have also allotted only Bonus Units periodically. No dividends so far.

Now the above scheme matured on 25-01-2009,but I am continuing in the scheme to reap the benefit of better NAV and maximizing my returns.

If now, when I redeem the Units, what will be my Tax implications and if at all any,how it is to be calculated.

kindly clarify at your earliest.

Thanking you,
Yours faithfully,
V.ARUNACHALAM
10-02-2011


Admin’s Response:

The income mentioned by you on redemption of units would be exempt as per the provisions of section 10(35) of the act.